Comparative statement of financial position accounts of Marcus AG are presented below.

Additional data (ignoring taxes):
1. Net income for the year was ‚¬42,500.
2. Cash dividends declared and paid during the year were ‚¬21,125.
3. A 20% share dividend was declared during the year. ‚¬25,000 of retained earnings was capitalized.
4. Equity investments that cost ‚¬25,000 were sold during the year for ‚¬28,750.
5. Machinery that cost ‚¬3,750, on which ‚¬750 of depreciation had accumulated, was sold for ‚¬2,200.
Marcus's 2019 income statement follows (ignoring taxes).

Instructions
a. Compute net cash flow from operating activities using the direct method.
b. Prepare a statement of cash flows using the indirect method.

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Marcus AG COMPARATIVE STATEMENT OF FINANCIAL POSITION ACCOUNTS AS OF DECEMBER 31, 2019 AND 2018 December 31 Debit Accounts 2019 2018 € 42,000 € 33,750 Cash Accounts Receivable 70,500 60,000 Inventory 30,000 24,000 Equity Investments (non-trading) 22,250 38,500 Machinery 30,000 18,750 Buildings 67,500 56,250 Land 7,500 7,500 €269,750 €238,750 Credit Accounts € 2,250 € 1,500 Allowance for Doubtful Accounts Accumulated Depreciation-Machinery 5,625 2,250 Accumulated Depreciation-Buildings 13,500 9,000 Accounts Payable 24,750 35,000 Accrued Payables 3,375 2,625 31,000 Long-Term Note Payable 21,000 Share Capital-Ordinary, no par 125,000 150,000 Retained Earnings 39,000 42,625 €269,750 €238,750 Sales revenue €540,000 Less: Cost of goods sold Gross margin Less: Operating expenses (includes €8,625 depreciation and €5,400 bad debts) Income from operations Other: Gain on sale of equity investments (non-trading) Loss on sale of machinery Net income 380,000 160,000 120,450 39,550 €3,750 (800) 2,950 € 42,500